The other recent trend of note within lithium market has been the significant disconnect between corporate transaction multiples and equity trading valuations, with the increase in corporate activity seen more broadly with the resources space over the past 12 months this would suggest that the current landscape is highly attractive to further strategic activity and potential industry consolidation.
Seems like we will take advantage of what the shorts have dished up and use it to further our own agenda. Very astute if you ask me.
What is Galaxy Resources currently working on?
In line with Galaxy’s commitment to project execution the Company is currently delivering on a number of operational and development initiatives with several exciting catalysts expected to be announced.
Whilst this is comforting to here as a shareholder, I would prefer more of an element of surprise. AT seems to like to telegraph such moves in advance. Does he really need to / I would prefer he just announce them and surprise anyone who is short.
Where do you see the Company and the stock price being in 5 years?
In 2017 Galaxy was the 5th largest effective producer of lithium raw materials on an LCE basis. In 5 years’ time we will endeavour to maintain this leadership position and potentially grow market share through the continued optimization of production at Mt Cattlin and the construction of our world class development assets, Sal de Vida and James Bay.
Love this point. We are already the 5th biggest and we have plans to further grow. Reading between the lines, I'd say AT wants to be top 4 and will be taking advantage of all means (M&A, optimizing MC and developing SDV and JB) to get there.
We will continue to be active on the corporate front and will consider strategic growth options should the right value-accretive opportunity arise.
This statement comes out after the TAW rumours hit the street. It doesn't directly address the rumour but doesn't really dispell it either. What does it mean for TAW?
On the topic of rewarding Galaxy shareholders - Does Galaxy plan to have dividends soon, a share buyback plan, or issue options for loyal shareholders?
The company will consider potential capital management options subject to its financial position and the right timing. Given the growth opportunity in the sector and the quality of Galaxy’s development assets the company has historically focused on reinvesting funds back into its business, as management feels this is the most effective way to enhance shareholder value.
Forget about a dividend in the short term. We will be reinvesting back into the business.
After no news for a while, good to here from AT. I feel supremely confident in my investment, where the company is heading and with the quality of management.
Dyor, aimo and glta.
GXY Price at posting:
$2.49 Sentiment: Buy Disclosure: Held